Freddie Mac Single-Family Update
On August 26, Freddie Mac issued a Single-Family Update pertaining to the new White House SCRA Initiative.
Today the White House announced a new Servicemembers Civil Relief Act (SCRA) initiative. This initiative was created so service members can maximize all of the protections under SCRA, including the six percent interest rate cap. To facilitate SCRA relief, Servicers are now able to accept alternative documentation to verify an eligible service member’s military status.
We encourage you to participate in this initiative. Freddie Mac recognizes the commitment and increasing sacrifice our military service members and their families make every day.
Participating Servicers are asked to:
- Search the online Defense Manpower Database Center (DMDC) on a quarterly basis to find service members in their portfolio that have Note Rates greater than six percent.
- Offer interest rate relief for eligible, active service members.
- Use the DMDC to confirm a borrower’s military status instead of requiring the service member to provide a copy of their orders.
- Special Note : While this part of the announcement currently conflicts with our Single-Family Seller/Servicer Guide (Guide), you can begin practicing this today. We’re applying these changes to our mortgage policies with an effective date of today, August 26. Those changes will be announced in our September Guide Bulletin.
- Read the White House blog and our Single-Family News Center article.
- Visit our Military Relief Options for Service Members Web page.
- Refer to Guide Sections 82.2, Relief Options Exclusive to Servicemembers and their Dependents, and 82.4, Applying SCRA Provisions.
- Contact your Freddie Mac representative.
Sign up for the latest emails on Single-Family news, updates, alerts, and education opportunities on our Subscription Center.
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.